Final answer:
The opportunity cost of producing roses is the value of the next best alternative forgone, which could be the production of a different good or service.
Step-by-step explanation:
The opportunity cost of producing roses for both countries in the previous example is B. The value of the next best alternative forgone in producing roses. The opportunity cost in economic terms is the benefit that is missed or given up when choosing one alternative over another. Unlike the monetary cost of rose production, the total profit generated from selling roses or the cost of raw materials, opportunity cost is concerned with the value of the next best choice which could be generating another product, spending the resources on different investments, or any other potential use of those resources.
For instance, if a country can produce either roses or wheat, and it chooses to dedicate land and resources to roses, the opportunity cost is the wheat that could have been produced with those resources. The country decides to forgo the benefits of harvesting and selling wheat in order to focus on roses. In summary, opportunity cost measures the cost of the foregone alternative which could be other goods or services not produced.